A Regulation D Rule 506(c) fund is a private investment vehicle that allows general solicitation
while restricting participation to accredited investors. Key features include:
● Accredited Investors Only – Investors must verify their accredited status.
● Public Marketing Permitted – Unlike Rule 506(b), this structure allows advertising.
● No SEC Registration Required – A Form D must be filed after capital is raised.
● No Fundraising Limit – There is no cap on the amount of capital that can be raised.
● Commonly Used By – Private equity, real estate, venture capital, and hedge funds.

An accredited investor is an individual or entity that meets specific financial criteria as defined
by the U.S. Securities and Exchange Commission (SEC). Qualifications include:
● Income Requirement: Annual income of at least $200,000 ($300,000 if married) for the
past two years, with the expectation of the same in the current year.
● Net Worth Requirement: A net worth exceeding $1 million, excluding the value of the
primary residence.
Certain entities, trusts, and institutions may also qualify. For more information, refer to the SEC
website.

The fund features a two-year lock-up period. Afterward, investors may redeem their capital with
90 days' notice. This structure allows for asset appreciation and strategic exits. The full
investment horizon is five years.
What Are the Steps to Invest?
Investing in the fund involves a simple, secure process:
1. Create an Account – Register through the investor portal.
2. Review Opportunities – Explore available funds and projected returns.
3. Verify Accreditation – Confirm eligibility under SEC standards.
4. Sign Legal Documents – Complete necessary agreements (e.g., subscription
documents).
5. Commit Capital – Fund your investment via ACH, wire transfer, check, or through the
portal.
6. Monitor Performance – Track updates and performance through the portal.

The fund targets a 12–15% internal rate of return (IRR), with a 9% annualized preferred return
paid quarterly, subject to available cash. Depending on market performance, total returns may
reach up to 25%.

Distributions are made quarterly based on performance and available liquidity. Investors receive
their preferred return before any profit-sharing. Preferred returns align with each investor’s
funding date—early investors may receive a higher rate. Carried interest is distributed
proportionally based on contributions.

The fund follows a transparent fee structure:
● 1.0% Setup Fee
● 1.5% Acquisition Fee
● 2.0% Annual Management Fee
● 40% Incentive Fee on Profits (Carry)

The fund utilizes the AppFolio investment portal for onboarding, contributions, distributions, and
communication. Investors receive quarterly updates including:
● Portfolio performance summaries
● Market and asset updates
● Disposition strategies
● Financial statements
● Annual K-1s and tax documentation
A dedicated Investor Relations team is available for direct support.

Yes. Investments can be made through Self-Directed IRAs (SDIRAs) using an approved
custodian, such as Equity Trust Company or other qualified providers.

The fund employs a disciplined risk management strategy:
● Acquires assets below 75% of market value to ensure a margin of safety.
● Diversifies holdings across multiple states to reduce regional exposure.
● Operated by a seasoned team with over 50 years of experience in real estate finance
and distressed asset acquisitions.

The fund is managed by Residential Mortgage Management II LLC, a joint venture between
PEMCO Capital Management LLC and NAP Private Equity Club LLC. The management team
has overseen more than $250 million in distressed asset transactions across 100+ deals. Fund
administration, accounting, tax, and audit services are provided by Sagelight Account LLC.

Yes. Investors who commit capital by August 31, 2025, qualify for an enhanced 10% annualized preferred return, paid quarterly, subject to available cash. This preferred return is higher than the standard rate and is designed to reward early participation in the fund.

The fund strategically invests in a diversified mix of distressed and opportunistic real estate-related assets, including:

HECMs (Home Equity Conversion Mortgages) – Reverse mortgage loans insured by the FHA, typically acquired post-default or post-foreclosure for asset repositioning.

CWCOT (Claims Without Conveyance of Title) – FHA-insured loan sales executed through auction platforms, allowing acquisition of distressed properties at below-market pricing.

SB 1079 Properties – Acquisitions under California's SB 1079 legislation, which provides unique opportunities to purchase foreclosed residential properties while promoting community stabilization.

Non-Performing Mortgages (NPLs) – Loans where borrowers are in default, providing the fund with opportunities for discounted acquisitions, restructuring, or foreclosure to unlock value.

This multi-asset approach enhances the potential for strong, risk-adjusted returns while offering downside protection through discounted entry points and diversified exposure.